Rural Finance Policies 9 - Factors affecting repayment rates in group-based lending: findings from Bangladesh and Madagascar
Lending is a risky enterprise because repayment of loans can seldom be fully guaranteed. The failure of a large number of state-sponsored agricultural development banks in many developing countries was due, among other things, to their inability to ensure good repayment rates among their borrowers....
| Main Authors: | , |
|---|---|
| Format: | Brief |
| Language: | Inglés |
| Published: |
International Food Policy Research Institute
2000
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/156432 |
| _version_ | 1855526997985329152 |
|---|---|
| author | Sharma, Manohar Zeller, Manfred |
| author_browse | Sharma, Manohar Zeller, Manfred |
| author_facet | Sharma, Manohar Zeller, Manfred |
| author_sort | Sharma, Manohar |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Lending is a risky enterprise because repayment of loans can seldom be fully guaranteed. The failure of a large number of state-sponsored agricultural development banks in many developing countries was due, among other things, to their inability to ensure good repayment rates among their borrowers. In the context of providing credit to the rural asset-poor, what is being increasingly called for is institutional innovation that combines prudent banking principles with effective screening and monitoring strategies that are not based on physical collateral (such as land). One important innovation has been the formation of borrower groups and the use of group responsibility and peer monitoring as the core principles guiding financial transactions. The authors cite successful endeavors including Grameen Bank in Bangladesh, SANSA in Sri Lanka and Credit Solidaire in Burkina Faso and, in Thailand, the Bank for Agriculture and Agricultural Cooperatives, and examine the factors affecting repayment rates. |
| format | Brief |
| id | CGSpace156432 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2000 |
| publishDateRange | 2000 |
| publishDateSort | 2000 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1564322025-01-10T06:43:33Z Rural Finance Policies 9 - Factors affecting repayment rates in group-based lending: findings from Bangladesh and Madagascar Sharma, Manohar Zeller, Manfred microfinance evaluation microenterprises non-governmental organizations government purchases poverty alleviation Lending is a risky enterprise because repayment of loans can seldom be fully guaranteed. The failure of a large number of state-sponsored agricultural development banks in many developing countries was due, among other things, to their inability to ensure good repayment rates among their borrowers. In the context of providing credit to the rural asset-poor, what is being increasingly called for is institutional innovation that combines prudent banking principles with effective screening and monitoring strategies that are not based on physical collateral (such as land). One important innovation has been the formation of borrower groups and the use of group responsibility and peer monitoring as the core principles guiding financial transactions. The authors cite successful endeavors including Grameen Bank in Bangladesh, SANSA in Sri Lanka and Credit Solidaire in Burkina Faso and, in Thailand, the Bank for Agriculture and Agricultural Cooperatives, and examine the factors affecting repayment rates. 2000 2024-10-24T12:44:08Z 2024-10-24T12:44:08Z Brief https://hdl.handle.net/10568/156432 en Open Access application/pdf International Food Policy Research Institute Sharma, Manohar; Zeller, Manfred. 2000. Rural Finance Policies 9 - Factors affecting repayment rates in group-based lending: findings from Bangladesh and Madagascar. Rural Financial Policies for Food Security of the Poor Policy Brief 9. https://hdl.handle.net/10568/156432 |
| spellingShingle | microfinance evaluation microenterprises non-governmental organizations government purchases poverty alleviation Sharma, Manohar Zeller, Manfred Rural Finance Policies 9 - Factors affecting repayment rates in group-based lending: findings from Bangladesh and Madagascar |
| title | Rural Finance Policies 9 - Factors affecting repayment rates in group-based lending: findings from Bangladesh and Madagascar |
| title_full | Rural Finance Policies 9 - Factors affecting repayment rates in group-based lending: findings from Bangladesh and Madagascar |
| title_fullStr | Rural Finance Policies 9 - Factors affecting repayment rates in group-based lending: findings from Bangladesh and Madagascar |
| title_full_unstemmed | Rural Finance Policies 9 - Factors affecting repayment rates in group-based lending: findings from Bangladesh and Madagascar |
| title_short | Rural Finance Policies 9 - Factors affecting repayment rates in group-based lending: findings from Bangladesh and Madagascar |
| title_sort | rural finance policies 9 factors affecting repayment rates in group based lending findings from bangladesh and madagascar |
| topic | microfinance evaluation microenterprises non-governmental organizations government purchases poverty alleviation |
| url | https://hdl.handle.net/10568/156432 |
| work_keys_str_mv | AT sharmamanohar ruralfinancepolicies9factorsaffectingrepaymentratesingroupbasedlendingfindingsfrombangladeshandmadagascar AT zellermanfred ruralfinancepolicies9factorsaffectingrepaymentratesingroupbasedlendingfindingsfrombangladeshandmadagascar |